Legal & General is introducing a 100 per cent clawback across its Sipp range if a member disinvests in the first four years.
The company says the move will come into effect on May 1 and will affect the rate of clawback on single contributions and transfer values received into all new and existing plans. The clawback will fall to zero after four years.
L&G currently operates a sliding scale of clawback commission that sees 100 per cent clawback if a member disinvests after one year.
This reduces by 25 per cent for each subsequent year before falling to zero after four years.
Products which will be affected by the change include the portfolio plus Sipp pension, portfolio plus pension and portfolio plus rebate plan.
An L&G spokesman says: “We feel these products are long-term plans and changing the commission claw- back to a simpler proposition is a valid move.”
Hargreaves Lansdown head of pension research Tom McPhail says: “You can see what L&G is doing from an RDR perspective as it is preventing advisers from piling in before the RDR deadline to get commission and then transferring out in a couple of years but these new terms do create additional barriers for IFAs and clients.”